December 28, 2017 at 11:12 am #1020
If you are in the Forex market since long you would know that there are different types of traders but the naïve traders are not aware of it. Some of the terms used for the traders will be foreign to the naïve traders because they are not aware of it. If you consider the traders in the United Kingdom they are professional traders so among the professional traders you will be able to spot fundamental traders, sentiment trader, noise traders, and arbitrage traders. A naïve trader may not know about the types of traders because you are new to the market. But what we advise is that the naïve traders should enter the market with some kind of understanding about the market. Actually, if the naïve trader has no knowledge of the types of traders it will be quite confusing for the naïve traders to understand what type of a trader they should become. Of course, through the Forex market, you will be able to make money but what happens if you have less-knowledge on the market? If you know the market it will be an added advantage for you to make money. If you understand the types of traders you will be able to get the proper view of your personality. Now, let us dive in.
Most of us don’t know that every trader is different in the world. If all of them were same then we could make millions of dollar profit just by buying other people trading system. But things don’t work like this in real life trading. You have to assess your own trading personality. Bawd on that you should develop a balanced trading system. But before you go live, you need to back test your trading system using a demo account. If you feel confident with your trading result then it’s time for you to make your life better by trading the live assets.
The fundamental trader
The fundamental traders are the ones who trade fundamental trading. The fundamental traders will trade both short-term and long-term. When the fundamental traders trade the market they would consider the fundamental factors in the market and make sure to study it thoroughly before making a sound decision. There are many strategies and techniques the traders can utilize in order to trade the market successfully. Even the fundamental analysis could be used in order to make proper decisions regarding the trades. However, it is important for the traders to get the clear idea of what they are doing. You should note that the fundamental traders focus more on short-term trades and also the trends are to be considered when trading the market. The factors such as bad news, economic factors and much more can impact heavily on the trader’s decision. Whatsoever, any type of trader should have access to the trading platform and should possess the logical thinking power. Without the platform no matter what kind of trader you are, you cannot trade the market. And, logical thinking is important for the traders to make the proper decision in trading.
The noise trader
The noise traders do not focus on the fundamental details but rather they focus on the economic trends. They believe that it is possible to trade the market for a short-term and to gain higher profits based on the economic trends. The noise traders consider the past information on the price to get an understanding of the market direction.
The sentiment trader
The sentiment traders are the ones who focus on the trends. They make sure to learn the trends and they try to get the proper idea of how it moves so based on it they make the trade decisions. They participate in the trading market by combining both the technical and fundamental analyses. As naïve traders, you should learn about them so you will be able to develop your own personality.
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